Improve or move homes?
Homeowners choose to improve not move
9 August 2012: Sometimes, people aren’t satisfied with the house they live in and will want something better. But are people moving to another property, or are they simply improving their existing one?
Our new survey1 reveals nearly half (47%) of homeowners are choosing to make home improvements within the next year, compared to just 8% of people who are planning to move. Among those planning to make home improvements, 72% want to update or modernise their décor, while one in ten (9%) are running out of space in their property.
Looking into the reasons why, Paul Wootton, our head of personal loans, commented: “A static housing market means many people are unable to move home and are opting to make home improvements instead.”
Funding your home improvement
If that’s you, how will you be funding your home improvements? Please let us know in our Facebook poll here.
Personal loans can be used to fund home improvements and the most common amount borrowed for this purpose is around £10,000 over five years2 . But Wootton warns you must shop around: “Making major renovations to your home can be expensive and people could be spending much more than they need to if they fail to shop around for the best rate.”
A bit of research shows that some of the big high street banks could be charging up to £1,100 more over a five-year term of a £10,000 loan compared to Nationwide3 – a significant sum in these austere times.
Nationwide’s personal loan
We charge 6.3% APR Representative to current account customers who use the account as their main current account. The rate is applicable for loans of up to five years between £7,500 and £14,9994 and can be taken out through a branch, over the telephone or via the internet.
Main current account holders qualify for our lowest loan rate
To qualify as a main current account holder, you must hold a FlexAccount with a Visa debit card (not cash card or cash card +) and:
- Have been paying in £750 a month for the last three months (excluding internal transfers); or
- Complete an account transfer to us (from a non-Nationwide account) using our Account Transfer Service or have done so in the last four months. For this offer the account transfer must be requested via branch or telephone and the account must be eligible for an overdraft; or
- Hold a FlexDirect account
Qualifying conditions vary by offer
1 Research conducted by YouGov. Total sample size was 2068 adults of which 1,324 were homeowners. Fieldwork was undertaken between 15th - 18th June 2012. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
2 In the 12 months to 30 April 2012, the most popular combination of advance and term for a new home improvement loan was £10,000 to £11,999 over 60-71 months, source: CACI.
3 Difference between cheapest and most expensive is £1,093.20. Source: Moneyfacts.co.uk, 24.07.12. Comparison of existing customer personal loans.
4 For loans outside of this range, personalised rates apply.